Maryland legislators are once again considering whether to permit online casino gaming as officials search for ways to address the state’s budget pressures.
Sen. Ron Watson introduced Senate Bill 885, which would allow online casino and online bingo gaming under oversight from the Maryland Lottery and Gaming Control Commission. The proposal comes as the state faces a widening fiscal gap.
Watson pointed to the state’s financial outlook while presenting the bill to the Senate Budget and Taxation Committee. “The Spending Affordability Committee was told we have to deal with a $2.3 billion shortfall next term. The gap widens to $3 billion in 2029, and by fiscal 2031 the gap is projected to be $4.1 billion,” Watson said.
Proposed Licensing and Taxes
The legislation outlines a system that would allow video lottery operators and certain sports wagering license holders to run online casino platforms.
Under the proposal, full iGaming licenses would cost $1 million. Operators offering only live dealer games would pay $500,000, and online bingo licenses would also cost $500,000. Each license would remain valid for five years.
The bill sets different tax rates depending on the type of game. Live dealer games would face a 20% tax on revenue, while other online casino products would be taxed at 40%. Watson estimates the program could generate roughly $250 million each year.
He also argued the state currently loses revenue to unregulated gambling websites. “Not $1 of the projected $200m spent illegally comes back into our state to support our schools, police, and infrastructure or our addiction services,” Watson said.
The measure includes consumer protection provisions requiring operators to display the 1-800-GAMBLER helpline and provide clear information about gambling risks. Credit card deposits would be prohibited.
Watson described the bill as an update to the state’s gambling framework. “What this bill does is simply modernize the delivery of games that already exist,” he said. “The same as we did with sports betting a few years ago.”
Debate Over Impact on Casinos
Supporters also point to developments in Virginia, where lawmakers have advanced online casino legislation. Watson raised the issue during discussion of the bill. “So, what has changed from the last time I introduced this bill?” Watson asked. “One word: Virginia.”
Opponents warn the shift to online gaming could hurt land-based casinos and local economies. Bobbi Jones, general manager of Ocean Downs Casino, raised concerns about potential job losses.
Some advocacy groups also caution that online casinos could increase gambling addiction. Jessica Wellman of the Campaign for Fair Gambling noted research showing problem gambling rates in states with online casino gaming average about 6%.
Watson said regulation would provide oversight for activity that already occurs online. “So, the question is not whether or not iGaming exists, because it does,” he said. “The question is whether or not we’ll regulate it responsibly, or will we keep pretending that prohibition is working when it clearly is not?”
The bill has passed its first reading and remains under review by the Senate Budget and Taxation Committee. If approved, Maryland voters would decide the issue through a public referendum.
Source:
“Maryland Considers Online Casino Legalization Again”, news.worldcasinodirectory.com, March 13, 2026
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